County looks at TIF option

It’s been more than four years since energy companies began legal proceedings to establish solar facilities in Jay County.

County officials are considering legislation to capture additional tax revenue from future solar farms.

Jay County Redevelopment Commission discussed plans to establish tax increment financing (TIF) districts in the four locations planned for commercial solar energy farms.

TIF districts capture additional property tax revenue created by improvements — in this case, the solar facilities — and set it aside to be used to help fund initiatives related to the district, with redevelopment commission overseeing those dollars.

Commissioners president Chad Aker shared hopes Wednesday for the county to set up TIF districts encompassing the areas planned for:

•Skycrest Solar, a $150 million, 155-megawatt facility in development by Invenergy, will be located on 2,500 acres in northwest Jay County.

•Sun Chief Solar — it should produce 100 megawatts — is planned on 1,200 acres near Scout Clean Energy’s Bitter Ridge Farm northeast of Redkey.

•Rose Gold Solar, a $173 million, 150-megawatt facility developed by Leeward Renewable Energy, is expected to take up 1,430 acres just north of Dunkirk. 

•New Jay Solar — it’s a $67.5 million, 39-megawatt facility being developed by Hodson Energy — is slated for 311 acres just east of Dunkirk.

Per timelines on economic development and tax abatement agreements between the companies and the county, construction on the solar farms must begin in the next few years. Specific dates are as follows: New Jay Solar is expected to begin construction by June 30, 2026; Skycrest Solar and Sun Chief Solar are expected to break ground no later than Dec. 31, 2026; and Rose Gold Solar to begin construction by June 30, 2027.

Timelines for Skycrest, Rose Gold and Sun Chief solar farms were amended last year, with energy companies citing delays from regional transmission organization PJM Interconnection’s process.

Commission member Chuck Huffman shared concerns he’s had in the past about establishing TIF districts and suggested looking into the financial outlook. Commission president Carl Walker agreed, noting the redevelopment commission will need to “ask for some numbers” to get the process started.

Commission members talked about receiving estimates from consulting firm Baker Tilly and law firm Barnes & Thornburg, with Walker noting Jason Semler of Baker Tilly plans to give his annual financial presentation for the commission in the next few months.

Also Wednesday, Jay County Redevelopment Commission discussed progress with developing the county’s 68 acres on the western edge of Portland.

The project calls for a future housing and mixed-use development of the county’s land along Indiana 67. If completed in full, the $25.5 million project would create 76 single-family homes, eight duplexes and 154 multi-family units. (County officials in favor of it refer to it as a “legacy project” to be worked on for the next several decades.)

Approximately $1.24 million in American Rescue Plan Act dollars have been allocated for the first phase of the project. The redevelopment commission also agreed to contribute up to $1.5 million in TIF dollars toward the project, with commissioners agreeing at that time to commit another $1.3 million subject to receiving grant dollars from Regional Economic Acceleration and Development Initiative (READI) 2.0 program.

Officials have said at past public meetings that $1.2 million in READI 2.0 funds have been earmarked as a potential award for Jay County, although that total has not been formally announced by the state. 

Aker voiced frustration on the matter Wednesday, saying it’s been six months since the county expected to hear an answer. He noted the final decision is up to Indiana Economic Development Corporation and said awards for the East Central Indiana region should be announced soon.

Walker shared a $3.6 million construction estimate from engineering firm Rundell Ernstberger and Associates for the first phase, which creates a framework for streets and utilities. (Redevelopment commission discussed entering into a contract last month for planning development with the company.)

CWC Latitudes consultant Ed Curtin pointed out the county is already a month behind on starting the process to seek proposals and other steps needed to prepare for construction. Walker, Huffman and Horn voiced concerns about investing in the project without knowing whether redevelopment commission will have the funds to pay for it.

Questions also circulated around what Portland’s commitment will be for the project, with officials pointing to plans in the next few weeks for representatives from several county and city government units to meet.

The redevelopment commission took no action on a contract with Rundell Ernstberger and Associates on Wednesday.

It also reviewed its bank account balance, which currently sits at $1.379 million. (It doesn’t include American Rescue Plan Act dollars, which are being kept in the county’s bank account currently.)

Commission members also looked at an annual report created from county auditor Emily Franks. The report, which documents commission member names and the commission’s financial information from 2024, will be given to Jay County Council members at their next meeting April 9.